The Money Maze: Understanding Inflation, Deflation, and Shrinkflation

The Money Maze: Understanding Inflation, Deflation, and Shrinkflation

Learning Objective

At the end of the lesson you will be able to explain the concepts of inflation, deflation, and shrinkflation and provide examples of each.

What do you already know about changes in prices and the value of money?

Introduction to Inflation

Inflation is the increase in the prices of goods and services over time, leading to a decrease in the purchasing power of money.

What was the average cost of a house in Belgium in 2000

€79,660

https://www.statista.com/statistics/604955/average-selling-price-of-houses-in-belgium/

What was the average gross monthly salary in Flanders in 2000

2.259

3.830  (2021)

https://bestat.statbel.fgov.be/bestat/crosstable.xhtml?datasource=91eb75ea-9839-4b36-aa48-56ca412987b5

What was the average cost for a litre of fuel in Belgium in 2000

.96 USD per litre

https://tradingeconomics.com/belgium/gasoline-prices

today

1.99 USD per litre

What was the average cost of an IPHONE in Belgium in 2000

2007:-)

Sales to the European market started in November 2007, first in Germany, followed by Britain and then France. Reports suggested that these launches were met with less enthusiasm. In France it was sold by Orange for 649 euros.

Inflation in Belgium

Discuss specific examples of inflation in Belgium, such as housing costs, education, and healthcare.

Understanding Deflation

Deflation is the decrease in the prices of goods and services, leading to an increase in the purchasing power of money.

Shrinkflation Explained

Shrinkflation occurs when the size or quantity of a product decreases while the price remains the same, effectively leading to hidden inflation.

Recognizing Shrinkflation

Engage students in a game where they have to identify examples of shrinkflation in everyday products.

Review and Discussion

Summarize the key concepts of inflation, deflation, and shrinkflation and facilitate a discussion about their real-world implications.

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.